Framework Cofinancing Agreement between Asian Development Bank and Eurasian Development Bank modified
Moscow, 22 September 2014. On 19 September 2014, provisions on contract cofinancing were added to the Framework Cofinancing Agreement between Asian Development Bank and Eurasian Development Bank, Resources Manager of the EurAsEC Anti-Crisis Fund. That will allow ADB and the Manager to finance one contract using the resources of ADB and the ACF. Prior to the modification, the Framework Agreement provided only for parallel financing of different components of one project by ADB and the Manager.
These provisions will facilitate expanded cooperation between the Manager and ADB and financing of a number of potential joint projects utilising ADB’s procurement policies. It should be noted that this modification will allow for participation of companies from ACF member states in tenders for supply of goods, work, and services in the framework of such project implementation – ADB’s current procurement policies do not allow for participation of companies from non-member states of ADB in such tenders. The first project that can be financed using the new arrangement is the project of Toktogul HPP rehabilitation in the Kyrgyz Republic.
The Framework Cofinancing Agreement between Asian Development Bank and Eurasian Development Bank was signed on 3 May 2013 and provides for joint financing of projects in those countries, which are members of both EDB and ADB—Armenia, Kazakhstan, Kyrgyzstan, and Tajikistan. The document specifies the tentative amount of possible cofinancing for a period of three years from the date the Agreement was signed: up to US $715 million from ACF and up to US $1.2 billion from ADB.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
Read more about EDB at http://www.eabr.org/
The EurAsEC Anti-Crisis Fund (ACF) amounting to US $8.513 billion was formed on 9 June 2009 by the governments of the same six countries. The objectives of the ACF are to assist the member countries in overcoming the consequences of global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The ACF member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the ACF Resources Manager.
Read more at http://efsd.eabr.org/.
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